City Research Online

Abstract

The prime concern of actuaries has been always life assurance. Nowadays, their active role is well recognised in non-life business and has gained more importance. Nevertheless, they have given aviation insurance the least of their attention, although the actuarial approach is highly needed. This could be due to the large number of different factors that influence this class of insurance, such as the difficulties of collecting the data, the revolutionary changes in the aviation field and the number of aircraft and the risks involved.

This research on aviation insurance aims at achieving premium rates for airline hull insurance based on scientific approach to and statistical analysis of the available data.

Technical developments of aircraft, international aviation associations and aviation risks represent the introduction to this research.

The aviation insurance policy, the factors affecting the premium rates, the general aspects and the model used to calculate the hull rates in London market will be studied as well. This study indicates that the data of each airline is not by itself large enough to be used to calculate its premium rate. Therefore the rate for each airline is readjusted by the market's final result.

Credibility theory will be introduced as a statistical method for rating.

Its basic concept is similar to that used in the market, where collateral data is needed to adjust the calculated rate based on the data available for a particular risk.

The developments in credibility theory will be studied and introduced for application in aviation insurance premium rating

Publication Type:	Thesis (Doctoral)
Subjects:	H Social Sciences > HA Statistics H Social Sciences > HE Transportation and Communications
Departments:	Bayes Business School > Actuarial Science & Insurance > Statistical Research Reports Doctoral Theses Bayes Business School > Bayes Business School Doctoral Theses

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